Today's regulatory landscape: what you need to know?
At the end of February 2025, the European Commission presented the “Omnibus I” package, aiming to reduce reporting burdens and strengthen competitiveness, while maintaining the strategic objectives of the Green Deal.
In this context, the European Parliament approved the “Stop the Clock” proposal, which postpones the following regulatory deadlines:
- Corporate Sustainability Due Diligence Directive (CSDDD): Member States will have one additional year to transpose the provisions into national legislation. The same delay applies to EU companies with more than 5,000 employees and a net turnover exceeding €1.5 billion, as well as to non-EU companies generating turnover above this threshold within the EU.
- Corporate Sustainability Reporting Directive (CSRD): Large companies with more than 250 employees or a turnover exceeding €40 million (the so-called “second wave”) will be required to report on their social and environmental measures for the first time in 2028, instead of 2026. Listed SMEs (the “third wave”) will report such information in 2029.
Voluntary sustainability: an opportunity to embrace?
The “Omnibus I” package highlights the importance of voluntary sustainability reporting for companies not subject to mandatory disclosure obligations. The European Commission plans to publish a recommendation on voluntary sustainability reporting, pending the adoption of a dedicated delegated act, based on the VSME standards developed by EFRAG and published in December 2024.
The postponement granted by the “Stop the Clock” initiative represents a strategic lever for companies aiming to enhance their resilience in an uncertain economic environment. Environmental, social, and corporate conduct topics—addressed in voluntary sustainability reporting—offer businesses the opportunity to make more informed decisions, seize new business opportunities, and strengthen their market position.
These developments at the European level are part of a broader context, in which national initiatives have also been adopted to support small and medium-sized enterprises in their transition toward more sustainable practices.
The Italian Ministry of Economy and Finance (MEF) has established a Coordination Table on Sustainable Finance, with the aim of supporting Italian SMEs in collecting sustainability-related information, following a principle of proportionality based on company size. Following the consultation launched in August 2024, the Table published an updated version in December 2024, with the goal of providing a reference model for the standardization of sustainability disclosures. This model is designed to support companies in understanding and managing environmental, social, and governance (ESG) issues, thereby facilitating a more structured approach to sustainability.
Adopting voluntary sustainability reporting offers several benefits for SMEs:
- Better access to financing: businesses can benefit from more favorable conditions and lower costs.
- Priority access to incentives: SMEs may have the opportunity to obtain grants and incentives more quickly.
- Better risk management: collecting data on sustainability allows for better investment planning and risk monitoring.
- Greater resilience: businesses improve their ability to manage the impacts of energy and environmental shocks.
- Strengthened corporate reputation: greater transparency and attention to sustainability can enhance the company’s image in the market, increasing consumer trust.
These benefits make voluntary sustainability reporting a strategic choice for SMEs that want to improve their competitiveness and resilience in the long term.
Technesthai, with its financial planning product - Dynamic Business Planner (DBP) - has activated the Dynamic Sustainability Report module with the specific goal of supporting SMEs in ESG reporting: the module already includes the ability to create a sustainability report aligned with the MEF methodology and compliant with European regulations, as well as enabling specific investment plans to improve ESG performance.
Visit our Products page to learn more.